FIFTY-FIRST ANNUAL REPORT. 131 



produced in spite of every jirecaution. It is a serious question whether 

 the two latter qualities can possil^ly be marketed under the existing 

 freight rate, in spite of its thoroughly useful character. The result is 

 to keep many a consumer from having any apples at all. This particu- 

 lar situation is aggravated bj' the fact that the State of Washington does 

 not at the present time enjoy the benefits of a lower bulk rate; in other 

 words no rate at all on bulk apples shipped in cars is applicable at this 

 time. Hence, they are not only forced to pay high freight rates on the 

 lower grade stuff, but they must ])e packed in expensive boxes, costing 

 during the last three years, from 25 to 35c per bushel box. 



I do not wish to draw the picture too discouragingly, l)ut perishable 

 industries representing in the Pacific Coast and Northwestern States an 

 investment of easily a billion dollars, have their future fate tied up in 

 the present freight rate. Congress and manj^ good friends of the Farm- 

 ing Industry forced the resuscitation of the War Finance Corporation 

 in the expectation that it would be a help to our growers. There is a 

 bare possibility that it may be; on the other hand, what is needed is not 

 steps that will hold prices up to the consumer, but action which will 

 put goods within the consumer's reach so that he can consume more freely, 

 thus encom-aging production and furnishing tonnage to the carriers. 

 Little good can come from uneconomic palliatives for our potato situa- 

 tion, when Danish and Scotch potatoes can cross the ocean at a less cost 

 than our inland freight from points upstate in New York to New York 

 City, or from Maine to Boston, New York and other logical outlets for 

 Maine potatoes. The rate on potatoes from ]\Iaine, by the way, to 

 New York, has been raised from 35c to 623/2C- Needless to say, we in 

 common with every live organization that has ideals for the future pro- 

 gress of the perishable industry in the United States, are doing all we can 

 to bring about an amelioration of existing conditions. We are interested, 

 not only because of the great quantities of the commodities we handle 

 on a merchandising basis and the very much greater quantities that we 

 handle for growers accounts on consignment, but we are gravely inter- 

 ested as producers, owning, leasing and operating at least 16,000 acres 

 of orchards, groves and gardens. We know the growers' problems and 

 when we work for him, we are at the same time working for ourselves. 



At the present time, our producing properties are scattered from Penn- 

 sylvania to Washington, and from California to Florida. We try to be 

 a real factor in the life of every community where we own properties. 

 We realize that we lose a certain amount of efficiency that exists when 

 the individual owner of an orchard operates his own place. However, 

 we selected our Managers from the class of Agricultural College gradu- 

 ates and practical fruit growers who have their heart and soul in their 

 work, and in the communities where they live, and who, while not owners 

 of the individual properties they supervise, are nevertheless stockholders 

 in the corporation, so that their interest in efficiency is very greatly 

 stimulated. There are other gains to large scale operation in the way 

 of purchasing barrels, boxes, baskets, fertilizer and farm equipment and 

 supplies of every kind at wholesale price. I have visited every property 

 in the United States that we own except one, and I have accurate reports 

 on that one, and I am able to say that every one of them is a greater 

 asset to the communitj^ because of higher productive condition than it 

 had when we purchased it. Many of our properties were purchased at 



